Wang Investment & Finance Pvt. Ltd., New Delhi V. ACIT, Circle- 27(1), New Delhi

ITA 4663/DEL/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 8824 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 21-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘F’, NEW DELHI Before Sh. K. N. Chary, Judicial Member Dr. B. R. R. Kumar, Accountant Member ITA No. 4663/Del/2018 : Asstt. Year : 2014-15 Wang Investment & Finance Pvt. Ltd., 19, DDA Commercial Complex, Kailash Colony, New Delhi-110048 Vs ACIT, Circle-27(1), New Delhi (APPELLANT) (RESPONDENT) PAN No. AAACW0298B Assessee by : Sh. Arun Kishor, CA Revenue by : Sh. B. S. Anant, Sr. DR Date of Hearing: 16.11.2021 Date of Pronouncement: 15.02.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the assessee against the order of the ld. CIT(A)-24, New Delhi dated 04.05.2018. 2. The assessee, M/s Wang Investment & Finance Pvt. Ltd. is in the business of investment & finance. During the year under consideration, the assessee company has shown income mainly from business income and income from capital gains. The assessee filed return of income on 27.09.2014 declaring a total taxable income of Rs.3,66,31,415/-. 3. During the year, the assessee has earned dividend income of Rs.2,17,34,300/- as exempt income. The assessee has made investments in shares amounting to Rs.39,45,36,274/- with an increase of Rs.1,58,43,283/- as compared to the investments of the last year. The assessee submitted that no interest expenses ITA No. 4663/Del/2018 Wang Investment & Finance Pvt. Ltd. 2 have been incurred which is found to be factually correct. The assessee submitted before the revenue authorities that no expenses were incurred directly or indirectly for earning any income from the said investment as such no disallowance u/s 14A is called for. The assessee submitted that only DEMAT charges were claimed as expenses in relation to earning of exempt income. The AO computed disallowance @0.5% on the investments of Rs.97,03,52,800/-. 4. The ld. CIT(A) computed the disallowance @0.5% of Rs.38,66,14,600 to Rs.17,56,500 as against the calculation of the AO of Rs.48,51,760/-. 5. We find that the total expenditure incurred for employee benefit of Rs.12,49,995/- and other expenses were of Rs.14,38,526/- out of which Rs.9,32,020/- have been disallowed suo moto and the balance expense of Rs.17,56,502/- is the sealing of disallowance u/s 14A. Having heard the arguments and after going through the details, we hold that an amount of Rs.2,00,000/- could be reasonably considered as disallowance u/s 14A and ordered accordingly. 6. In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 15/02/2022. Sd/- Sd/- (K. N. Chary) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 15/02/2022 *Subodh*